Ethanol adds to ADM's increased profits

By Kris Bevill | July 15, 2010
Posted Aug. 4, 2010

Agriculture and food manufacturing giant Archer Daniels Midland Co. reported Aug. 3 it had netted $246 million more in earnings for fiscal year 2010 than the previous year. Total net earnings for fiscal year 2010 were $1.9 billion. Segment operating profits were $3.2 billion, up $786 million from last year.

ADM's ethanol operations contributed to the earnings increase, due largely to better ethanol margins, according to the company. The corn processing sector's operating profit increased by $537 million in the last 12 months. Profits from the sweeteners and starches segment of ADM's corn processing operations decreased to $119 million, but the bioproducts segment was up "significantly," according to the company. ADM processed 19.6 million metric tons of corn in fiscal year 2010, an increase of 2 million metric tons over the previous year.

Despite the increase, corn processing continues to be ADM's lowest overall revenue source by far. Net sales and other operating income from corn processing operations grew by approximately $200 million in fiscal year 2010 to $7.9 billion. Meanwhile, net sales and other operating income from the company's agricultural services totaled $25.4 billion, down about $6 million.